Unilever Brazil: Case Write-Up on Marketing Strategies for Low-Income Consumers

Questions

1.Should Unilever target the NE segment? Is the segment attractive and can Unilever compete? What are the pro’s and con’s?

According to the Unilever Brazil case, Unilever already had an 81% share of the Brazil detergent market which far exceeds than its strong competitor Procter& Gamble’s 15% share. However, it is facing a real threat that P&G Brazil may draw on worldwide R&D and marketing expertise is closing up and will attack in low-income segment in the Northeast of Brazil. What’s more, there is no other way to expand Unilever Brazil in detergent market and growing number of small local brands targeted at low-income consumers …show more content…
Because low-income consumers of Latin American and Brazil have similar cultural background and needs). The new product would be in line with attributes that are most important to consumers. Learning from the section” How do Northeastern Consumers Evaluate Detergents?” we know that consumer often associate a strong demand of product’s smell and softness, the perceived power of the detergent and the dissolving power. While S is pursuing a low cost strategy, the long-term strategic goal is to dominate the NE Brazil market. Within this in mind, Unilever would give up the 30% saving of using plastic sachet. Moreover, considering about the weekly budget of the poorest consumers, S will be sold in 1kg and500g with cardboard boxes.
Promotion: As we know from the case, the illiteracy rate of NE consumers is more than 40% and many women in the NE view washing clothes as one of the more pleasurable activities of their week. Promotion will rely heavily on producing imagery message to communicate with customers. That imagery must be funny and impressive so that women would talk about those things while they are using S products. Moreover, Unilever could produce some slogans that based on the symbolic value NE people attach to cleanses. For example, the slogan can be “Using S, you will have a brighter life.” Promotions could also be advertising via television and billboard.
Distribution: We are been told that Unilever is unable